Best Buy Co Inc (BBY) to Pay $3.8M for Selling Recalled Items

Best Buy Co Inc (NYSE:BBY) has agreed to pay $3.8 million for selling recalled items.

Best Buy, BBY StockThe $3.8 million being paid by Best Buy is for a civil penalty. The company knowingly sold items after a recall had been announced for them. This resulted in it selling roughly 600 recalled products from 2010 to 2015.

The civil penalty of $3.8 million being paid by Best Buy was agreed upon by the U.S. Consumer Product Safety Commission (CPSC). The CPSC said that the company sold 16 different products that had been recalled from 210 to 2015. This includes over 400 Canon Inc (ADR) (NYSE:CAJ) cameras.

According to the CPSC, Best Buy also continued to sell recalled products even after it told the organization that safety measures had been put in to place to stop the practice. The company failed to permanently block product codes for recalled items and even overrode some of the block codes in order to sell the products.

Best Buy worked with the CPSC to re-announce the recall of the various products sold from 2010 to 2015. It also is now taking part in a compliance program to ensure it correctly follows recall policies. This includes a system of internal controls and procedures, as well as disposing of recalled products appropriately.

Best Buy isn’t the only retailer that has sold products that it shouldn’t. Late last month, Costco Wholesale Corporation (NASDAQ:COST) got itself in trouble for selling fake Tiffany & Co. (NYSE:TIF) rings. It sold as many as 2,500 of the counterfeit rings to its customers.

BBY stock was down slightly as of Noon Tuesday.

More From InvestorPlace

Article printed from InvestorPlace Media,

©2023 InvestorPlace Media, LLC